Provident fund rates for older workers to be reviewed

The Singapore government is reviewing its policies on provident fund contribution rates to make sure that older workers remain employable according to this article on Yahoo,

Under the current practice, employer CPF (Central Provident Fund) contribution rates are cut when a worker reaches the age of 50, 55, 60 and 65. This was started in 1988 to increase their employability after a major recession.

But in recent months, unionists have been calling for a review of the policy, saying that there is a need to boost retirement savings because people are living longer and facing higher housing and medical costs.

Many employers, however, are unwilling to increase in their CPF contribution rates because of the uncertain global outlook.

They are also bracing themselves for the financial impact of a law due to kick in next year that requires them to offer re-employment to workers who reach 62.

But on top of re-employment legislation, Deputy PM Tharman said there also needs to be a change in attitude regarding older workers in Singapore. He cited Germany and Japan as examples where positive and supportive attitudes help the working elderly.

He said that Singapore must offer a conducive work environment to make older workers feel valued and respected no matter what job they do.